AGI Holds Seminar on Carbon Emissions Levy

AGI Holds Seminar on Carbon Emissions Levy

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The Association of Ghana Industries (AGI) held a seminar on the recently introduced carbon emissions levy in Accra. The seminar sought to educate AGI member companies as well as solicit concerns, questions, and suggestions that companies had about the emissions levy Act. The Act places a levy on carbon dioxide emissions from industry and it is essential for all stakeholders and companies to understand its implications on business.

In his opening remarks, the CEO of AGI, Mr. Seth Twum-Akwaboah bemoaned the lack of consultation prior to the introduction of the emissions Act, to solicit inputs from the key stakeholders, especially where it was announcement that the Act will take effect from February, 2024. He cautioned the GRA and Ministry of Finance officials about the already heavy tax burden on companies and the need for Government to put the taxes collected to their intended use, citing the environmental tax as a tax that did not meet its objective. Members raised several concerns including how the carbon dioxide emissions will be measured within Industry.

Explaining the rationale behind the levy, the Chairman for the emissions levy Committee, Mr. Alexander Havey-Ewusi from the GRA, said the country is trying to manage the negative aspects of climate change and the policy objective is to promote sustainable environmental management, eco-friendly technology and green energy, he added. He further expounded that promoting a green economy comes with cost implications and therefore the emissions levy. It was noted that the GRA and the Ministry of Finance are yet to spell out the implementation guidelines of the Act, hence the seminar to sensitize AGI members on the emissions levy Act as a whole.

Allaying the worries of members present, a member of the emission levy committee Mr. David Lartey-Quarcoopome said there is still work being done to guide its implementation. The Chairman of the emissions committee assured AGI members present that, the implementation of the Act will not put any CAPEX or emission related infrastructure cost on the affected companies.

Ghana’s Parliament has enacted the Emissions Levy Act, 2023, Act 1112 (Levy). The Act was passed with respect to the tax measures introduced by the government in the 2024 Budget Statement and Economic Policy (the 2024 Budget). It aims to raise revenue to support the various sector reforms as well as to promote the green economy.